Mercy Limited is a company incorporated in France. It entered into a contract with Assurance Limited, a company domiciled in Italy. Assurance Ltd sells and distributes laptops in many European countries. Under the contract, Mercy Ltd agreed to sell laptop computers to Assurance Ltd. The laptops were assembled in Manchester, England by Stone Computers, a company in which Mercy Ltd holds 55 per cent shares. The component parts were manufactured in Tokyo, Japan. The computers were shipped f.o.b. from Liverpool and were delivered to Assurance Ltd’s warehouse in Spain for sale in that country. The contract provided, inter alia, that any disputes arising under the contract shall be subject to the exclusive jurisdiction of the English courts. The contract also provided that it shall be governed by English law. In choosing the English courts as their preferred forum, the parties were concerned to avoid delays associated with trial in some European countries, including Italy. After inspecting the laptops, Assurance Ltd noticed a number of defects in the computers and is contemplating legal action against Mercy Ltd. Advise Assurance Ltd on two potential bases of jurisdiction available to it under the Brussels Recast Regulation. Assume that you advised that Assurance Ltd sues in England. You just returned from court after issuing a claim form for service on Mercy Ltd. You find on your desk a notice from Assurance Ltd that a few days ago Mercy Ltd instituted action in Italy for a declaration of nonliability under the contract. Advise Assurance Ltd on the state of the law on this subject and any options available to it. Give reasons and cite Brussels Recast Regulation articles, case law, and journal articles to support your answer
QUESTION 2. ANSWER BOTH PARTS
a) Bratwurst, a company in Germany, has a nuclear installation in France. Through the negligence of one of the employees of Bratwurst, there was a nuclear accident. Dylan, a farmer in Wales, claims that contamination from the accident polluted the atmosphere and ultimately resulted in the death of all the sheep on his farm. Dylan wishes to sue Bratwurst in tort for negligence. Advise him as to the country/countries in which he may institute proceedings. (b) Before the nuclear accident, Dylan had entered into a contract with O’Donnell, a butcher in the Republic of Ireland, to sell the latter a certain quantity of meat. The delivery of the meat was to O’Donnell’s place of business in Belgium. As a result of the death of his sheep, Dylan is unable to honour this contract. A clause in the contract states: ‘in the event of a dispute, the courts in Denmark should have nonexclusive jurisdiction’. O’Donnell wishes to sue Dylan for breach of contract. Advise him as to the country/countries in which he may institute proceedings. Give reasons and cite Brussels I Regulation articles, case law, and journal articles to support your answer.